If you left $2,500 on deposit with a bank promising to pay you a 5 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $28,668
B. $11,467
C. $250,750
D. $2,625
Answer: A
You might also like to view...
Factors that cause the CPI to exaggerate the inflation rate do not include
a. the tendency of consumers to substitute relatively cheaper goods for those that have become relatively more expensive b. political pressure from unions and retirees on the Bureau of Labor Statistics to overstate the inflation rate c. the introduction of new technologies that make it easier to obtain the same standard of living d. improvements over time on the quality of products e. the increase in purchases from discount stores
Tight monetary policy raises the real interest rate, which ________ the demand for dollars, ________ the supply of dollars, and ________ the equilibrium value of the dollar.
A. decreases; decreases; decreases B. increases; increases; increases C. decreases; increases; increases D. increases; decreases; increases
The labor supply curve will be positively sloped if the substitution effect of wages is
A. Negative. B. Weaker than the income effect of wages. C. Stronger than the income effect of wages. D. Equal to the income effect of wages.
When the free-rider problem occurs in a market for a good, what is true of the quantity of the good supplied relative to the efficient quantity of the good?
A. The good is typically oversupplied in a market where the free-rider problem occurs. B. When the free-rider problem occurs, the good can be provided completely free of charge. C. The good is typically undersupplied in a market where the free-rider problem occurs. D. The good is typically efficiently supplied in a market where the free-rider problem occurs.